Find initial cash flow of project

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Reference no: EM132703442

The Big Bazar ltd is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the floor inventory by €250000 and increasing its debt to suppliers by 40% of that amount. The company will also spend €300000 for a building contractor to expand the size of the showroom. This will add an additional €60000 of annual depreciation. The company will be offering credit to its customers and expect to generate and additional €200000 in sales. Its trade receivables represent 20% of the sales. If any, give the amount of net working capital to be included in the initial cash flow of this project.

Reference no: EM132703442

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